Hotel values across Europe have grown by 2.3% to an average price per room of €220,000 ($290,666), according to the latest Hotel Valuation Index from HVS London. HVS attributes the rise to improved trading performance rather than improved investor sentiment.
Paris and London are in spots No. 1 and No. 2 with per room values of €631,000 and €587,000 ($834,062 and $775,093), respectively.
“Well established markets such as London and Paris are already operating at high occupancies, but a further increase in rates, with a varied business mix, is expected to continue to push value,” Sophie Perret, co-author of the report and associate director of HVS London, said in a news release. “Secondary and provincial markets are likely to see modest growth as the much-valued corporate and meeting business takes time to recover fully.”
Every hotel distribution channel saw growth during 2011, according to the TravelClick Perspective.
The biggest increase in demand was seen in the hotel-direct channel, which grew by 6.3%. The Global Distribution System channel saw demand increase by 5.9%.
Meantime, the highest average-daily-rate growth was seen via the online travel agents, which was up 9.8%, and OTA demand growth increased by 3.5%. OTAs account for 11.4% of overall transient demand, according to TravelClick.
Panelists tackled the tricky issue of social media in the workplace this week at the 6th Annual HR in Hospitality Conference & Expo, reports HotelNewsNow.com’s Patrick Mayock.
While platforms such as Facebook and Twitter present new opportunities for training and engaging with employees, they also bring new challenges and wrinkles to the age-old workplace policies and practices.
“You have this new medium, but the same old rules apply,” said Gregg Gilman, an attorney with New York-based Davis & Gilbert LLP. “… If you operate by those rules, you’re going to be OK.”
There are times when rate discounts can work in favor of a hotel, writes HotelNewsNow.com columnist Steven Kamali.
For instance, discounts might be effective when introducing a new product trial or location, he writes. But with less money coming in via rate, hoteliers need to think about volume to make up the difference. At this point, hotel executives should begin thinking about what their guests expect.
“The customer isn’t looking for the best price but rather the best price value,” Kamali writes. “Like the old economic formula of Value = Experience/Price says, it’s not useful to slash prices if your value level is lowered.
“Is it worth getting rid of the customized massages for the sake of cost from your budget if it makes your business unique and desirable? Probably not. The best way to get noticed in your market is to offer a better experience, not necessarily a lower price.”
Hersha Hospitality Trust has acquired the 111-room Rittenhouse Hotel in Philadelphia for $42 million.
“We look forward to being long term owners of The Rittenhouse,” Hersha’s CEO Jay H. Shah said in a news release. “Philadelphia is poised to become one of the country’s top five travel destinations over the next four years.”
Hersha is assuming management of the hotel.
Compiled by Shawn A. Turner.